TWO WHEELER INDUSTRY
Emerging in India – 1940 .
Growth slow in 1950 - 60 Nationalization .
Market share – 75% .
India’s 2nd Largest 2 wheeler market in world .
HISTORY & CORPORATE
PROFILE OF HERO HONDA
Hero Honda is a two-decade-old story, Joint venture between
Hero (India co.) & Honda (Japan co.) in 1984.
In 2001, for the first time achieved, ‘World’s No.1’ two-
wheeler manufacturing company.
Now, Hero Honda Motors Ltd. Is the world’s Largest
manufacturer of two-wheelers for 9 consecutive years.
1985 - First 100cc Bike.
1988 - Was the No. 1 among all motorcycles in India.
1991 - National Productivity Council’s ( NPC) Award.
1992 - National Safety Award.
2002 - Fastener World Established.
2006 - Hero Honda enters the scooter’s segment, launches
Ambition 133, Ambition 135
CBZ, CBZ Star, CBZ Xtreme
CD 100, CD 100 SS, CD Dawn, CD Deluxe, CD Deluxe (Self Start)
Glamour, Glamour F1
Karizma, Karizma R, Karizma ZMR F1
Passion, Passion+, Passion Pro
Splendor, Splendor+, Splendor+ (Limited Edition), Super Splendor,
HERO HONDA TIMELINE
1956 - Formation of Hero Cycles in Ludhiana (Majestic Auto
1983 - Joint Collaboration Agreement with Honda Motor Co.
Ltd. Japan signed. (Shareholders Agreement signed)
1984 - Hero Honda Motors Ltd. Incorporated.
2001-The Company became the largest two-wheeler
manufacturing company in India and globally.
2010 - The board of directors of the Hero Honda group had
decided to terminate the joint venture between Hero Group of
REASONS FOR SEPARATION OF
In 1998 Honda decided to set up its own scooter manufacturing
In 2010 Honda Motorcycles and Scooters India Private Limited
decided to launch a 110cc (Cubic centimeters, a unit of volume) then
the conflict arose.
As directors on the board of Hero Honda, all of them had access to its
plans and strategies while Hero Honda had access to none of Honda’s
The fourth issue was related to Hero Honda wanting to do its own
independent R&D and manufacturing its own products.
On the other hand, Honda was making its expansion stronger in India
by introducing efficient models. (models such as Activa,Dio &
Let us see journey of both Hero and Honda company after
Hero Honda started in 1984 as a joint venture between Hero
cycles of India and Honda of Japan
The company is the largest two wheeler manufacturer in India.
The 2006 Forbes 200 Most Respected Companies List has
Hero Honda Motors Ranked in 2010, when Honda decided to
move out of the venture. Hero group bought the shares held by
Subsequently, in August 2011, the company was renamed as
HERO MOTORCORP with a new corporate identity.
On June 4, 2012, HERO MOTORCORP approved a proposal
to merge. The investment arm of its parent Hero investment
pvt. Ltd. Into the Automaker.
The decision comes after 18 Months of its split from Honda
Name of Company
On January 19,1984
In New Delhi
Brijmohan Lall Munjal
Two wheeler and Four wheeler
Hero Motorcorp Ltd. 34,Community Centre, Basant
Lok, Vasant Vihar, New Delhi 110057, India
Huge brand equity and one of the biggest
players in the two wheelers Indian market.
Excellent R&D, and wide variety of products
in every segment.
Excellent distribution over 3000 dealership
and service centers.
Absence in the premium bike segment.
High import for its spare parts i.e. over 30%
Most of the products have similar features
and low on design and innovation.
Two-wheeler segment is one of the most
Export of bikes is limited i.e. untapped
Affordable products with reasonable cost.
Strong competition from Indian as well as
Dependence on Government policies and
rising fuel prices.
Better public transport will affect two-
2010 - Ranked No.3 Most trusted brand across categories
amongst Young Adult Males.
2010 - Rated as Top Indian Company in Automobile- two
wheeler sector by Dun & Bradstreet- Rolta Corporate Awards.
2011 - Ranked No.1 Brand in the Auto (two wheelers) category
in the Brand Equity ‘’Most Trusted Brand”.
Two Wheeler Manufacturer of the year Award by Bike India
“Most Recommended Two Wheeler Brand of The Year” Award
by CNBC Awaaz consumer awards.
Let us see journey of Honda Company……
Honda Motor Company. Ltd is a Japanese public
multinational corporation primarily known as a manufacturer
of automobiles and motorcycles.
Honda has been the world’s largest motorcycle manufacturer
since 1959, as well as the world’s largest manufacturer of
internal combustion engines.
Honda surpassed Nissan in 2001 to become the second-largest
Japanese automobile manufacturer.
Honda is the Sixth largest automobile manufacturer in the
The company achieved the number one position among all
mass production cars sold in USA.
Competence in engine manufacturing-
company’s core product.
Diversified product portfolio.
Strong position in Asia’s motorcycle
Dependence in North America to
generate most of the revenue.
Low investments in research and
development (R&D) leading to
Increased market penetration and lower
Increasing government regulations.
Improving U.S. economy.
Timing and frequency of new model
Rising Japenese Yen exchange rates
The company achieved the number one position among all
mass production cars sold in the USA.
Honda was gaining more market share in India by
introducing models such as Activa, Dio & Eterno.
In 2008, Beijing Auto Show, Honda announced that they were
looking to develop an entry-level brand exclusively for the
Chinese market similar to Toyota’s Scion brand in the USA.
Hero is an Indian company and Honda is a Japanese company.
Those companies has to build strong brand awareness and
credibility among its customers.
When there was a joint venture it was India’s 2nd Largest two
The main conflict for seperation arose when Honda decided to
launch a 110cc bike.
On technical base Bajaj is the best from other but from our
research, consumer prefer both Hero and Honda bike due to
high resell value and low maintainance.